Hempel Corporate Responsibility Report 2011/media/Global/files/... · goal setting, performance measurements, feedback and recognition. The aim is to recognise achievement, evaluate

Corporate Responsibility Report 2011

Contents

Introduction to the Hempel Corporate Responsibility Report 2011 02

How we work with Corporate Responsibility 03

Ethical behaviour 04

Our people 06

Community engagement:

Our corporate social responsibility 08

Employee volunteering 11

Procurement 13

Health & Safety 14

Environment 16


Ethical BEhaviour | our PEoPlE | community EngagEmEnt | ProcurEmEnt | hEalth & SafEty | EnvironmEnt

I am proud to introduce our Corporate Responsibility Report. Since its creation in 1915, the Hempel Group has been at the forefront of companies who acknowledge that their responsibilities lie far beyond financial achievements and numbers on a balance sheet. In recent years, our customers, suppliers and employees have expressed an increasing interest in knowing more about our work within Corporate Responsibility. We have therefore published our first consolidated report as a way to provide our stakeholders with a better picture of the key values that drive us as we conduct our business.

We believe our coatings contribute to a better world through increased protection and fuel efficiency, but we also know that our activities involve chemicals. So we must focus each and every day on reducing our environmental impact and creating a healthy and safe workplace for everyone directly or indirectly involved in our products. We meet these goals by providing quality training to our employees and through innovative research into new technologies – all without compromising the high level of product performance rightly expected by our customers.

Our global presence, with activities in most parts of the world, has been possible because our business is based on

the respect of each individual and every culture. All Hempel employees are connected through our Code of Conduct and our common fundamental values of Quality and Service. These principles support our underlying standard of ethical behaviour, which we believe is essential for a more transparent business and a better world.

A company like ours cannot be a part of the greater global society without also being an active player in local communities. In Hempel, we believe that everyone deserves a fair chance at a proper education, as access to education is a crucial step in overcoming poverty and building a solid future for individuals, families and even countries. This is why the Hempel Foundation invests heavily in schools and education programmes in areas of the world that are especially in need.

I hope you will enjoy this journey through our current and future initiatives within Corporate Responsibility, and that this report will give you the confidence that we are a valuable coatings partner.

Pierre-Yves Jullien Group President and CEO

Introduction to the Hempel Corporate Responsibility Report 2011

2 Corporate Responsibility Report 2011

The Hempel Group is committed to conducting business in a socially responsible manner and with respect for our environment and communities.

Supplying coatings to the Decorative, Protective, Marine, Container and Yacht market segments, Hempel has 24 factories, 48 sales offices and 10 R&D centres all over the world. We strive to create a safe and inspiring workplace that also engages with the local community.

Our Corporate Responsibility work also aims to foster a closer dialogue with our stakeholders, customers, suppliers and employees. By discussing our ambitions within Corporate Responsibility, we hope to build even stronger relationships based on exceptional business practices and ethics.

In 2011, we established a governance structure, including a steering committee headed by the CFO, to ensure commitment from top management and alignment with our business strategy. At the same time, we also went through a process to structure our work within Corporate Responsibility and to ensure we cover all aspects of our business. The process involved representatives from top management and included workshops and training sessions. As part of the process, we analysed our business and identified six focus areas within Corporate Responsibility for Hempel: ethical behaviour, our people, community engagement, procurement, health and safety, and the environment.

This Corporate Responsibility Report gives an overview of our efforts in each of our six focus areas.

As part of our One Hempel – One Ambition strategy, we acquired Crown Paints in 2011. Crown Paints will publish its own Sustainability Report for 2011 and is therefore not included in this report.

How we work with Corporate Responsibility

About the Hempel Foundation

The main purpose of the Hempel Foundation

is to own, secure and provide a sound

economic basis for the continued existence

and development of the business carried

out by the Hempel Group worldwide.

The Hempel Foundation also supports

charitable projects of a cultural,

humanitarian and scientific nature around

the world, especially if they help meet

the world’s environmental and poverty

challenges. To make this contribution as

effective as possible, the Foundation

focuses on two key issues:

the education of children in need,

and research into environmentally

sustainable solutions for

the coating industry.

3

EthiCal BEhaviouR | ouR PEoPlE | Community EngagEmEnt | PRoCuREmEnt | hEalth & SafEty | EnviRonmEnt

Conducting business in a responsible manner, with respect for our individual employees and the communities in which

we operate, has always been a priority for Hempel.

While we ensure compliance with all relevant laws and regulations in the countries where we have a presence, mere compliance is not enough. With this in mind, we have launched a number of training programmes and other initiatives to make certain our ethics standards are met in all areas of our business.

We have policies in place that cover communication, business ethics, management responsibility and health, safety and environment.

Internal auditsInternal audits are an important part of our commitment to ethical business behaviour. Not only do they ensure safe operations and proper working conditions, they also support our awareness of all the legal requirements surrounding the use and sale of our products.

Each year, we carry out an extensive internal audit programme that ensures compliance with our company’s standard procedures and financial requirements, as well as our HSE Management requirements and other legal aspects. In 2011 alone, we conducted more than 25 individual audits of Hempel companies within the Hempel Group. Each region also conducts its own internal audits of Quality and Environment. The audit reports are sent to our Executive Group Management Team along with quarterly reports demonstrating follow-up results.

Ethical behaviour


Code of Conduct and Business EthicsOur Code of Conduct describes how Hempel conducts business. A copy is given to all of our suppliers along with a request that they respect these guidelines when doing business with us. Our Business Ethics policy provides further guidance for all employees and includes guidelines regarding gifts and entertainment. The policy also covers conflicts of interest as well as our anti-bribery clause.

We also provide each of our employees with a copy of our Code of Conduct and our Business Ethics policy when they join Hempel. To ensure these guidelines and policies are understood and adhered to, we developed an online training programme and test that covers both documents. Any employee that does not pass the test is required to retake it. This training programme has already been rolled out to all office and management staff in the Americas region, with a 100 per cent completion rate. Over the course of 2012, the programme will be rolled out to the other Hempel regions.

Anti-bribery policyAs stated in both our Code of Conduct and our Business Ethics policy,

Hempel is determined to avoid any form of corruption or bribery.

The payment or acceptance of a bribe is fundamentally inconsistent

with Hempel’s values and our high standard of honesty in

business relationships.

Competition lawAs part of our efforts to ensure competition law compliance,

a number of important markets were audited in 2010 and 2011.

These markets were subsequently provided compliance training that

was based on an analysis of current sales, trends and Hempel’s

position in the relevant product markets.

In addition to the audits, European employees of the Hempel Group

also took part in webinar-based training sessions to improve their

understanding of competition law. Similar training sessions and audits

are planned for the years ahead, and the programme will be expanded

to cover the Americas, Middle East and Asia Pacific as well.

5


In order to achieve our vision and One Hempel – One Ambition

strategic objectives, we need the right people on our team. Success

in our competitive global market hinges on providing an attractive

work environment that enables our people to grow professionally while

making a difference for our customers. In Hempel, we offer our 5,000

employees the support they need to realise their professional goals and

reach their full potential.

RecruitmentRecruiting a considerable number of new employees in both mature and emerging markets is an important step in supporting our ambitious growth strategy. This past year, we implemented a best practice process and assessment tools for global recruitment, and we developed and implemented a new employee orientation e-learning programme. This programme provides a common introduction to Hempel in multiple languages, helpings us integrate new employees faster and more effectively throughout Hempel’s organisation.

Performance and developmentTo support the performance and continued growth of both our employees and our company, annual performance and development reviews are mandatory for all Hempel employees. The employee performance evaluation process includes goal setting, performance measurements, feedback and recognition. The aim is to recognise achievement, evaluate progress and support the continued development of each employee.

TrainingHempel Academy is our global centre for training and development. Based in Copenhagen, Denmark and Shanghai, China, the Academy develops and delivers training programmes for both employees and customers. The training offerings include paint technology, management, leadership, communication, finance, and sales and marketing. These programmes draw on Hempel’s position as a global organisation and our instruction methods incorporate e-learning, webinars, classroom training, seminars, workshops and personal, one-on-one coaching.

Our people


Developing leadership talentOur talent programme prepares tomorrow’s leaders, fosters innovation and helps us attract, develop and retain the right people. To strengthen our pool of future leaders, the Hempel talent programme Explorer – Next Generation was launched in 2010. The programme is designed to develop general leadership skills as well as nurture specific competencies and expertise. More than 50 Hempel employees were accepted into the programme in its first year alone.

Young talentIn Hempel, we offer young, talented people opportunities to develop their competencies through trainee programmes in our main markets. For example, our China trainee programme admits up to 16 young graduates per year and opens the door to careers within sales, technical service and supply chain management. Each position provides a structured training programme over 18-24 months and valuable on-the-job experience that prepares participants for a career within the Hempel Group.

In addition to our local trainee programmes, Hempel also collaborates with AIESEC (the world’s largest student-run organisation) to offer international internships that give young people hands-on experience and skills.

Taking care of our peopleIn 1954 J.C. Hempel established the Employee Foundation to provide

financial support for people connected to Hempel (employees or

relatives of employees) who are in special need of assistance.

Hempel’s Employee Foundation helps those associated with Hempel

who are suffering hardships primarily due to catastrophic illness,

death of a family member or other similar tragic circumstances.

In 2011, Hempel developed a new global HR system that will help streamline our HR processes

and give us better global reporting capabilities. This new HR system was implemented in the

Americas region in 2011 and will be rolled out in the rest of Hempel during 2012.

7


A company is an integral part of a community. And while all companies contribute by paying taxes and creating jobs,

Hempel’s global reach enables us to play a larger role in society. Through the Hempel Foundation, we support cultural

and humanitarian projects around the world, with a specific focus on the education of children in need.

Community engagement: our corporate social responsibility

Education of children in need

As one of the most viable pathways out of poverty, an education is the key to lasting, positive change for many children. And yet for millions, a formal education is well beyond reach. That is why Hempel supports initiatives to help teach disadvantaged children, who urgently need a foundation for learning in order to build a better future for themselves, their families and their communities.

Children enrolled in the following education programmes supported by the Hempel Foundation receive a quality education that includes community outreach, parental involvement, teacher training, new textbooks and modern learning materials. In 2013, we plan to expand the number of projects in order to give even more children around the world access to a quality primary education.


Pune, IndiaDespite India’s growing prosperity, millions of the country’s children lack access to proper education. The Hempel Foundation is supporting three schools in Pune, a city located 150 km east of Mumbai. The schools are in one of the city’s less-developed areas, and the improvements include the development of new materials for teaching and learning, repairs to the buildings and upgrades to the facilities and classrooms. The project also helps familiarise teachers with innovative, effective new teaching methods.

West Bengal, IndiaIndia’s brick-making industry employs millions of unskilled labourers, many of whom are children. These children have no access to playgrounds, health services or education. The Hempel Foundation is therefore building two new education centres for the children. Set to open in April 2012, the centres will provide warm food, healthcare and comprehensive pre-education. The goal of the project is to help the children learn as many necessary basic skills as possible, enabling them to enter the local education system and hopefully get a chance at a much brighter future.

Alto Molócué, MozambiqueThe Hempel Foundation is providing support to two schools of 700 children each in Alto Molócué, Mozambique. Before the project began, the schools in this impoverished region were in extremely poor condition and classrooms contained up to 80 pupils. The lack of adequate teaching materials, high absentee rates and poorly trained teachers added to the appalling situation. Our initial efforts have focused on educating the teachers in basic competencies, establishing professional school management, reducing the number of children in each class, providing new teaching materials and books, building a school library and launching reading clubs.

Shanghai, ChinaDue to China’s economic growth, cities such as Shanghai have seen an enormous influx of migrant workers and their families. The local school systems have had difficulties handling the increase in enrolment, and so a number of private schools are being established to help educate the migrant children. Unfortunately, the schools lack sufficient resources as the parents are often unable to afford tuition. The Hempel Foundation is therefore supporting five of these migrant schools to help these children get a proper education. More than 10,000 migrant children are benefitting from this project.

9


Chengdu, ChinaOn 12 May 2008, a massive earthquake hit China’s Sichuan province. The catastrophe claimed the lives of nearly 87,000 people and left thousands of children orphaned. The SOS Children’s Village in Chengdu took in many of the earthquake orphans, and the Hempel Foundation immediately provided financial assistance to the Village. Today, the Hempel Foundation continues to support one of the family houses that is home to eight children and their SOS mother. The house provides the children with a good home and the opportunity for a quality education.

Lujan, ArgentinaArgentina’s economic collapse in 2001 left many impoverished. And although recovery has been rapid, many families are unable to provide their children adequate opportunities for a better future. The Hempel Foundation is therefore supporting one family house in the SOS Children’s Village in Lujan, near Buenos Aires. The home gives eight orphaned or socially vulnerable children a caring environment, a comprehensive education and, most importantly, a fresh start in life.

Battambang, CambodiaCambodia’s modern history has been shaped by war and political unrest. Since peace finally came in the late 1990s, the country has been struggling to rebuild its school system. The Hempel Foundation provided a donation to help construct a new school in Battambang and today the Foundation co-funds the school’s daily operations. The school opened its doors in 2009 and is now filled with 500 children who are eager to learn to read and write.

Johannesburg, South AfricaIn 1989, the first Vuleka School was established to help black children learn English so that they could go on to study in comprehensive English medium schools. Today, Vuleka Schools provide a high quality primary education that enables most students to be awarded scholarships for high school and, hopefully, university. A good education gives hope to underprivileged black children, as it is a vital step in finding a good job and building a better future for themselves and their families. The Hempel Foundation supports the Vuleka School in North Riding, Johannesburg and its 193 pupils.


MozambiqueSix employees – one from each

of the regions in Hempel and one

from Crown Paints – spent a week

volunteering in Mozambique. The

group experienced first-hand

how a school project sponsored

by the Hempel Foundation is

helping disadvantaged children

obtain a good primary education.

During their visit, the volunteers

taught English and Spanish,

built a volleyball court and gave

presentations of their home

countries. They also introduced the

children to games from their home

cultures – a novel experience for

these children who have never

left their local community.

ChinaMany outdated computers that

companies take out of service are

still well-functioning. So Hempel

China’s IT department came up

with a plan to make good use of

old computers to help children

in need. The IT professionals

travelled from all over China

to Chengdu to donate some of

Hempel’s old computers to the

region’s SOS Children’s Village,

which the Hempel Foundation is

already supporting. The team also

volunteered their time to help set

up the machines and teach the

children how to use them.

PolandWhen Hempel opened a new

factory in 2011 in Poland, our

employees also wanted to make

a positive impact on the local

community. Their project, called

“Hempel – the World of Paints”,

taught the children about paint

and allowed them to experiment

with its physical properties. They

learned how substances behave

when mixed together and how to

achieve the best results with paint.

While broadening the children’s

horizons, the project also showed

them that the knowledge they

gain from school is applicable

in everyday life. A great success,

the employees have now run the

project several times.

ArgentinaEmployees of Hempel Argentina

volunteered their time at the local

SOS Children’s Village in Lujan.

Another project supported by the

Hempel Foundation, the Children’s

Village is home to orphaned and

underprivileged children from the

region. Our volunteers spent the

day working side by side with the

children as they painted the jungle

gym on the playground. This was

a project about community and

family, and some of the Hempel

employees even brought along

their own children and spouses to

help out and join in the activities.

Here are a few examples of how some of our employees have generously volunteered their time and energy to make a positive impact in 2011:

Community engagement: employee volunteering

At Hempel, we believe

corporate responsibility is

about more than our policies.

So to stress the importance

of taking an active role in

our world, we encourage our

employees to volunteer their

time to the causes that

mean the most to them.

Volunteering not only

helps out people in need,

it’s also a unique learning

opportunity that fosters

personal development and

greater social awareness

among those who generously

give their time.

11


12

Each Hempel product is made from raw materials sourced from around the globe through multiple suppliers. As we work with key raw material suppliers

to develop and produce high quality products, we also strive to foster solid relationships built on outstanding business practices and similar business ethics.

Procurement

Supplier policy As a baseline when building a sustainable business relationship, we expect our key raw material suppliers to adhere to the standards defined in our supplier policy. The policy outlines our expectations related to quality management and safe operations in terms of the environment as well as employees. Also included in the policy is our expectation that business is conducted in a manner that does not compromise Hempel’s Code of Conduct.

Supplier agreementAll key raw material suppliers sign our supplier agreement. The agreement commits the raw material supplier to upholding our supplier policy and meeting international standards for labelling and packaging as well as for the safe storage, handling, and transport of dangerous goods. The agreement also includes standards for health, safety and environment.

We ensure that all raw materials used in our products meet legal requirements. For example, all raw materials used in Europe are subject to REACH compliance. This ensures compliance not only through the commitment of our suppliers, but also through a rigorous internal qualification and approval process for all raw materials used in our production.

We currently assess compliance to standards and policies through a questionnaire.

Supplier dialogue Our key raw material suppliers are our business partners, so we establish a mutually beneficial partnership that is built on continuously developing materials and incorporating corporate responsibilities. In order to build a common understanding of corporate responsibility and to learn from each other, we have introduced dialogues with selected suppliers on this subject and related issues. In 2012, we will further educate our buyers and category managers within corporate responsibility topics, enabling us to extend our dialogue with even more suppliers.

13Corporate Responsibility Report 2011


Hempel has long been committed to ensuring the health and safety of

our employees and customers. Our work practices and the products and services we develop all support our role as a responsible company

with an integrated approach to health, safety and

environmental management.

Our Group Health, Safety and Environmental policy along with our training programmes establish a solid framework that enables us to improve working conditions and reduce the risk of accidents and incidents. We also promote the use of safer materials when developing new products and we are ahead of schedule in our efforts to implement a new international standard for safety labels on all products.

Health and safety forms an integral part of all of our activities related to the production and handling of raw materials and products in our factories and warehouses.

TrainingTraining is an important part of our health and safety activities. With an aim to increase awareness and minimise risks, our 2011 training programme covered accident prevention, fire prevention and forklift operation. The accident prevention and fire prevention training programmes are offered by Group Compliance Management to managers and workers in our factories and warehouses. In 2011, a total of 103 people were trained in accident prevention, and 106 were trained in fire prevention.

The forklift operation training programme material was developed in response to a number of accidents, incidents and near-misses that happened while operating forklifts. In 2011, 15 of our factories and 19 of our warehouses conducted this training – in all, more than 500 employees took part.

Health & Safety


2011201020092008200720062005200420032002

232420

24

332827

32

38

60

2011201020092008200720062005200420032002

9.210.6

8.510.2

13.7

9.911.0

12.010.7

19.1

AccidentsWe keep detailed records of all accidents that occur in our factories so that we can investigate and analyse the causes. Over the years, we have achieved significant improvements thanks to awareness, training and preventive measures.

An accident is defined as an on-the-job injury that results in at least one day’s absence. In 2011, 23 accidents were reported by our factories across the Group. When we compare the number of accidents to our total working hours, the level is quite low for our industry. But every accident is one too many, so we do our best to learn from these accidents and prevent their reoccurrence.

Three of our factories accounted for 70 per cent of all accidents in 2011. These factories are now receiving special attention and guidance.

Product safety We depend on more than 800 different chemicals to produce our assortment of products. Each of these chemicals has a unique profile, and some are safer to handle than others. As stated in our Group HSE policy, we actively work to integrate environmentally sustainable technologies and the use of safer materials in the development of new products and solutions. With this in mind, our R&D team takes a cross-functional approach to replace, reduce or eliminate the chemicals we consider least safe or most restrictive to use.

Safety communicationThe way we communicate how to work safely with Hempel products is gradually changing to a new system called GHS – Globally Harmonised System for Labelling and Classification of Chemicals. The United Nations-endorsed system is intended to support international efforts concerning the safer and more environmentally-responsible management of chemicals.

This improved safety labelling system is being gradually adopted by countries all over the world. We have already implemented GHS in China – well before national regulations have required us to do so.

Safety First campaignIn a continuous effort to reduce risks and ensure workplace safety,

Hempel Singapore launched a Safety First campaign focused on

reporting and learning from near-misses. It kicked off in November

2011 with a training session for 30 production and warehouse

operators and managers. The campaign includes our new definition

of near-misses as well as information on how to report a near-miss

and why it is important to report these issues.

The Safety First campaign will be rolled out in all of Hempel’s

factories in Asia Pacific during 2012, followed by our sales offices

and warehouses and the rest of the Hempel Group.

Hempel Singapore has the longest running record

for days without accidents: an impressive 1159 days

(as of 31 December 2011) – more than three years.

Number of accidents Number of accidents per 1 million factory working hours

Direct causes of accidents

Machinery ●Handling/lifting ●

Moving object ●Slip/trip/fall (same level) ●

● Other ● Transport/traffic● Hazardous substance/spill● Fall at height

10%17%

17%

13%

13%

17%9% 4%

Indirect causes of accidents

Procedure not followed ●Inadequate training/instruction ●

Unsatisfactory conditions ●Inadequate equipment ●

● Other ● Carelessness● Inadequate personal

protection

11%13%

13%

3%

10% 47%

3%

Part of body affected

Eye ●Head/face ●Back/neck ●Arm/elbow ●

Finger/hand/wrist ●

● Other ● Toe/foot/ankle● Leg/knee● Chest/abdomen

4%7%

17%

10%

14%

21%7%

10%

10%

15


At Hempel, we are committed to taking responsibility for protecting the environment through our policies

and our actions. For us, responsibility is about complying with all relevant

laws and regulations in the countries in which we operate, continuously

improving our environmental performance and supporting

research into environmentally friendly technologies

and solutions.

Our Group Health, Safety and Environmental (HSE) policy requires us to integrate sustainable technologies into the development of new products. This also benefits our customers by helping them reduce their carbon footprint. Some of our recent innovations extend the lifetime of steel constructions, reduce the fuel consumption of ships and lower the energy and maintenance costs of buildings.

We also have policies in place to ensure that our HSE management system monitors our environmental performance, and that we optimise our resources through recycling and reduced consumption. The energy we use in production and the generation of waste are two key areas in which where we are actively working to improve our environmental performance. The graphs in this section show the consolidated figures for all Hempel factories.

ISO certification Our quality and HSE management systems are certified according to the ISO 9001 and ISO 14001 standards. Due to our uniform processes and quality across our entire company, we received ‘Global’ certification in 2011. Now, instead of regional or standalone certificates, our new ISO 9001 certificate covers more than 45 sites. In addition, our global ISO 14001 certificate covers more than 25 sites, and five sites are covered by a global OHSAS 18001 certificate.

Environment


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148139143

131127

145

160161

183187

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Energy consumptionThanks to energy saving efforts and a rise in production volume, our energy consumption per tonne of manufactured product decreased from 2002 to 2007. From 2008, our energy consumption has remained stable, but due to a decrease in total production volume, relative energy consumption has increased.

In 2011, the opening of two modern, automated factories in Poznan, Poland and Guangzhou, China began to impact our energy consumption. Automation helps us reduce the risk of injuries that stem from manual handling, but it does lead to greater energy use. We are working to counteract these factors through energy saving initiatives such as optimising equipment usage in our production plants.

Waste managementWaste is an element of paint production that is impossible to avoid, but must be managed. Our intention is to reduce waste generation as much as possible and to increase the recycling of waste. Since 2002, Hempel’s waste generation is down by almost 50 per cent.

We have made considerable reductions in “other waste,” which consists of materials that can for the most part be recycled (including packaging, metal, plastic and wood).

“Hazardous waste” needs special disposal treatment, and each year more and more waste fractions are included in this category as a result of updated legislation. We have nonetheless kept pace with the industry in terms of our hazardous waste reduction efforts.

In 2010, we changed our definition of waste to exclude waste that can be repurposed, which resulted in the large drop from 2009 to 2010. Waste management will continue to be a focus area for all of our factories in 2012.

Total energy in kWh per tonne product manufactured Total waste kg per tonne paint produced hazardous waste other waste

17


Global HSE CompetitionFor the second year in a row, we held an HSE competition for our production units. Each factory was asked to submit a story that involved a safety or environmental improvement that reduced risk, improved efficiency or saved costs.

Hempel Portugal was awarded first prize for its new cost-effective “clean-in-place” tank cleaning system that uses less solvent and requires less energy while improving the safety and working conditions of operators.

Second place went to Hempel Bahrain for its waste water treatment plant that ensures a high degree of recycling when washing tanks used for waterborne paints. And third place went to Hempel Yantai for its implementation of several energy saving projects, including solar panels for heating water.

HSE auditsAudits are an important part of our Health, Safety & Environment (HSE) management system in our factories. They help ensure the safety of our employees and the uninterrupted supply of products to our customers, and they are a crucial part of our risk management efforts.

In 2011, we conducted eight HSE audits of factories as well as HSE inspections of Hempel offices and customer sites where our coating advisers work. Through these audits, we monitor compliance levels compared with our own standards, the local legal requirements and, where relevant, the ISO 14001 standard. Risks at each site are assessed and all unmitigated issues are addressed.

HSE audits also enable us to identify and document best practices, which are subsequently shared all over the Hempel Group and help us improve our performance.


Product developmentOur Research and Development team systematically works on new innovations and products to meet our customers’ increasing demand for energy-efficient products that incorporate sustainable technologies. This focus is also in line with Hempel’s own ambition to reduce our impact on the environment.

These are three of our latest product innovations:

EcoBoxcoatA series of products for the Container segment, EcoBoxcoat is set to replace the traditional solvent-borne system that has dominated the market for the past 30 years. The EcoBoxcoat system can be applied with the same equipment in the same factories as the solvent-borne system, so it does not require any major production changes or huge investments.

The EcoBoxcoat system will not only reduce solvent emissions (VOCs) by nearly 90 per cent, it will also improve the working environment for the thousands of applicators who are applying the coatings. And it will significantly reduce the risk of fires.

EcoBoxcoat is expected to perform on par with or even better than the existing traditional systems.

Contex ThermoguardLaunched in 2011, Contex Thermoguard is an innovative insulation coating that saves money and energy while improving comfort.

Contex Thermoguard’s insulating hollow vacuum microspheres form a tight, interlocking matrix that reduces radiated, conductive and convective heat through the painted surface. The high reflectivity of the coating also deflects nearly all of the sun’s rays, and this drastically reduces the cost and energy required for cooling a home or a building.

Contex Thermoguard is an excellent solution to reduce passive solar heating when applied to exterior walls. By lowering the indoor temperature by as much as 5˚C, Context Thermoguard saves electricity consumption and helps regulate the indoor climate.

HEMPASIL X3 Conventional antifoulings for ship hulls contain biocides that leach into the marine environment. Unlike these traditional coatings, HEMPASIL X3 is based on a blend of silicone polymers that forms a hydrogel microlayer between the paint surface and the seawater. This results in dramatically enhanced fouling release properties. By reducing hull friction, HEMPASIL X3 also improves fuel efficiency and subsequently reduces CO2 emissions.

Since its launch in 2008, HEMPASIL X3 has been the recipient of five product awards, three of which were related to the product’s environmental profile and two of which were related to the innovative idea behind the technology.

Results from comprehensive towing tank studies have been confirmed in practice on some of the world’s largest crude oil carriers, which saw an eight per cent reduction in fuel consumption. Based on these results, if the entire world fleet was given a coat of HEMPASIL X3, its carbon footprint could be reduced by 80 million tonnes.

19


Research in environmentally sustainable solutionsHempel and the Hempel Foundation support research in environmentally friendly technologies, particularly in the area of surface protection. A long-term partnership with the Department of Chemical and Biochemical Engineering at the Technical University of Denmark is driving fundamental research and raising awareness of sustainable technologies.

The partnership supports the following programmes:

Hempel Student Innovation LaboratoryThe Laboratory supports bachelor’s and master’s degree students who are working on innovative, environmentally sustainable solutions in chemical and biochemical engineering.

International Elite Master’s Programme This offers grants for living expenses and tuition to international students working on a master’s in chemical and biochemical engineering. Hempel employees act as mentors to guide the students as they learn to work globally with sustainable technologies.

PhD programmeSelected master’s students focused on expanding knowledge within the field of surface protection are offered an opportunity to continue in the university’s PhD programme. Projects include extending the lifetime of constructions, improving technologies within renewable energy, lowering the fuel consumption of ocean-going vessels and improving the environmental performance of coatings. All research is made public through scientific publications.



HEMPEL A/S Lundtoftevej 150 DK - 2800 Kgs. Lyngby Denmark

Tel: +45 4593 3800 Fax: +45 4588 5518 E-mail: [email protected] www.hempel.com

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Hempel Corporate Responsibility Report 2011/media/Global/files/... · goal setting, performance measurements, feedback and recognition. The aim is to recognise achievement, evaluate